Legal Question in Credit and Debt Law in California
Wage Garnishment - Not Tax Related
Hi, this is my first posting, and I'm hoping someone can help me. I am a stay at home mom, and my husband has been a Real Estate agent for the past 3 years. He is an independant contractor - A Real Estate Agent/ Loan Officer. The Broker that holds his license received wage garnishment order a few days ago. Neither the broker, nor my husband and I know what to do about the order. My husband is not an employee, and does not receive a salary, or even regular wages from the Broker. He splits a portion of a commission from the sale of a home or closing of a mortgage loan which does not even include witheld taxes. These commission splits few and far between in the current Northern California Real Estate Market. We may go months without receiving any commission splits at all.
The wage garnishment is the result of a voluntarily repossesed car we could not afford & gave back almost 6 years ago. About 3 years ago we were served a summons to appear in court I assume for a Judgement. At that time I was pregnant with our 1st baby & ill with Lupus, Gestational Diabetes, and Preclampsia. The Judgement was the last thing on our minds. We've not received any communication for 3 years since the summonds then boom - the garnishment order.
1 Answer from Attorneys
Re: Wage Garnishment - Not Tax Related
There are different procedures to garnish money owed to an independent ocntractor than used to garnish wages of an employee. Your husband's broker should have received a document called a Memorandum of Garnishment. While the broker should seek the advice of an attorney, the form isn't that difficult to fill out and return to the Sheriff's Department as required by law.
The broker can indicate on the form that your husband is not an employee but an independent contractor. That should enough to stop the garnishment temporarily.
You should seek legal advice to see if you need to file bankruptcy or negotiate a repayment plan. Payments to independent contractors are hard to protect than an employee's wages.
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